[Federal Register Volume 71, Number 65 (Wednesday, April 5, 2006)]
[Notices]
[Page 17130]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E6-4892]


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DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT

[Docket Number FR-5062-N-01]


Operating Fund Program; Transition Funding and Guidance on 
Demonstration of Successful Conversion to Asset Management to 
Discontinue the Reduction of Operating Subsidy

AGENCY: Office of the Assistant Secretary for Public and Indian 
Housing; HUD.

ACTION: Notice.

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SUMMARY: On September 19, 2005, HUD published a final rule amending the 
regulations of The Public Housing Operating Funding Program to adopt a 
new formula for determining the payment of operating subsidy to Public 
Housing Agencies (PHAs). The September 19, 2005, final rule contained 
different transition provisions to determine whether a PHA will have a 
reduction or an increase in operating subsidy. The Operating Fund 
Program final rule also provides that PHAs may submit documentation of 
successful conversion to asset management in order to discontinue their 
reduction in operating subsidy under the new formula, commonly referred 
to as the ``stop-loss'' provision. This notice advises the public that 
HUD has posted a notice on its Web site (www.hud.gov) providing 
additional guidance on the calculation of transition funding and how 
PHAs may qualify for the ``stop loss'' provision.

FOR FURTHER INFORMATION CONTACT: Elizabeth Hanson, Deputy Assistant 
Secretary, Departmental Real Estate Assessment Center, Office of Public 
and Indian Housing, Department of Housing and Urban Development, 451 
Seventh Street, SW., Room 2000; Washington, DC 20410-0500; telephone 
202-475-7949 (this is not a toll-free number). Individuals with speech 
or hearing impairments may access this number through TTY by calling 
the toll-free Federal Information Relay Service at 800-877-8339.

SUPPLEMENTARY INFORMATION: Interested parties should consult notice 
posted on the HUD Web site, www.hud.gov, for guidance regarding how 
transition funding will be calculated, the criteria for successful 
conversion to asset management, and the procedure for submitting 
documentation of successful conversion to asset management in order to 
discontinue a reduction in operating subsidy. The portions of the 
notice pertaining to ``stop-loss'' apply only to PHAs that: (1) Lose 
funding under the new formula; and (2) wish to submit documentation in 
accordance with the requirements for the first stop-loss deadline of 
October 1, 2006, so they may limit their losses to 5 percent. In order 
to provide PHAs with sufficient time to prepare for this first stop-
loss deadline, HUD has developed the abbreviated requirements set forth 
in the notice that can be accessed from the HUD Web site. HUD will 
issue expanded requirements for the subsequent deadline dates to 
qualify for stop-loss.

    Dated: March 29, 2006.
Orlando J. Cabrera,
Assistant Secretary for Public and Indian Housing.
 [FR Doc. E6-4892 Filed 4-4-06; 8:45 am]
BILLING CODE 4210-67-P